{"id":15225,"date":"2020-08-18T17:30:14","date_gmt":"2020-08-18T21:30:14","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=15225"},"modified":"2020-08-18T17:30:14","modified_gmt":"2020-08-18T21:30:14","slug":"proactive-spreads-august-18th-2020-cmi-amzn-brk-b","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-august-18th-2020-cmi-amzn-brk-b\/","title":{"rendered":"Full Time Profits, August 18th, 2020 – CMI, AMZN, BRK\/B"},"content":{"rendered":"

\"\"<\/p>\n

And just like that, it’s gone. The market has fully retraced all the losses from February. Granted, most of the gains are from just a handful of stocks, but there’s nothing like price moving higher to change the narrative about stocks.<\/p>\n

The market is still overhedged. Right now, the market has a realized volatility of 11%. The VIX Sep futures are currently in the 20s.<\/p>\n

It’s stinkin’ hard to sell the market off when hedges are that rich. Any pullback and those hedges will peel off quickly, causing a floor to setup in the markets.<\/p>\n

Trend is up, and until the market shows a shift in character we need to assume the trend will continue.<\/p>\n

Trade #1: CMI<\/h2>\n

\"\"<\/p>\n

CMI has had a nice run, and is creating a consolidation pattern near its highs. I’d like to see just a bit more of a pullback for an entry point. This is our second attempt trying to play this long.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 208.16<\/p>\n

Sell to Open CMI 18Sep20 185\/180 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.7, Exit at 0.04<\/p>\n

Tier 2: Enter at 0.98, Exit at 0.17<\/p>\n

Tier 3: Enter at 1.26, Exit at 0.21<\/p>\n

Stop Out If Close Under 184.89<\/p>\n

 <\/p>\n

Trade #2: AMZN<\/h2>\n

\"\"<\/p>\n

AMZN had a monster breakout and looks ready for continued upside. It could gap up and run without us, but odds are a day of rest or a small pullback will get us involved.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 3312.49<\/p>\n

Sell to Open AMZN 18Sep20 3085\/3080 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 1.3, Exit at 0.67<\/p>\n

Tier 2: Enter at 1.82, Exit at 1.18<\/p>\n

Tier 3: Enter at 2.34, Exit at 1.59<\/p>\n

Stop Out If Close Under 3084.89<\/p>\n

Trade #3: BRK\/B<\/h2>\n

\"\"<\/p>\n

Looking for a retest of the previous resistance to act as potential support. We’ll start scaling in just above that.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 205.25<\/p>\n

Sell to Open BRK\/B 18Sep20 200\/195 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.98, Exit at 0.29<\/p>\n

Tier 2: Enter at 1.372, Exit at 0.642<\/p>\n

Tier 3: Enter at 1.764, Exit at 0.854<\/p>\n

Stop Out If Close Under 199.89<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

And just like that, it’s gone. The market has fully retraced all the losses from February. Granted, most of the gains are from just a handful of stocks, but there’s nothing like price moving higher to change the narrative about stocks. The market is still overhedged. Right now, the market has a realized volatility of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15225"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=15225"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15225\/revisions"}],"predecessor-version":[{"id":15230,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15225\/revisions\/15230"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=15225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=15225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=15225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}